Below is the chart for the balance scorecard which shows the aims and objective of evolution engines. In this scorecard the segments included are shareholders value from the financial perspective; customer’s value perspective, internal value perspective and learning and growth perspective (Marr and Adams, 2004; Niven, 2005; Papalexandris et al., 2005) of the organization evolution engines. Evolution Engines is an engine manufacturer planning to initiate its business in the China. The balance scorecard is emphasizing on one particular segment which is manufacturing of the airplane engines. Elaborate details of division of segments and measure for enhancing the value are shown below.
The objectives which are being depicted in the balance score card above have been derived from the basic goals of the organization. The mission, vision and values of the company portray the specific dimension which the organization requires to walk on. Being an American company, Evolution Engines is planning to start operating in China. The goal which the organization strives to achieve is becoming a global leader in the manufacturing industry. It plans to do this by enhancing its overall production efficiency and become a renowned manufacturer of Engines. The operations of the organization are spread widely and the business prospects have driven the organization into entering in the aircraft engine manufacturing domain. The genre of the business is complex and requires constant up-gradation of technology for sustaining intense competition.
Company’s vision addresses all core internal and external areas of the business. Motivating the workforce and focusing solely on enhancing customer expectations are areas where the organization plans to focus. The company will act responsibly and indulge into CSR. Such practices will improve the market reputation which will ultimately create profits for all the share holders and stake holders of the organization. Aircraft manufacturing as a business is complex and requires specific set of skills for operating. Huge investment is required by the company for sustaining in the industry. Establishing a manufacturing industry in China will reduce the cost of the company.
There are certain strategic objectives which the organization is planning to accomplish. These objectives include improving the financial perspectives of the organization. This can be done by reducing the cost of manufacturing, increasing the profitability and acquire a competitive position for the organization. The strength of the business is in its customers. This requires the organization to focus on the customer value perspectives. This increases customer retention and customer value. The company can only plan to achieve these targets by improving the internal operations and the entire business process. Monitoring the production and manufacturing process along with productivity improvement and overall operations metrics of the organization. For acquiring the operational efficiency it is essential that the organization acts as a learning organization. This will improve overall employee satisfaction and retention. In this era where technological advancement is so common the organizations strive for achieving state of the art modern technology. This ultimately improves the business performance and enhances the overall value of the organization.
Understanding the norms of the industry is essential for effectively operating and sustaining in the industry (Niven, 2005). Understanding the core values on which the grounds of the company has been set are essentially important form profit maximization. The strategic objectives of the organization are derived on the basis of this information. Managers require being aware of all the aspects of the business. They must understand the SWOT and form the strategies after analyzing the industry trends. Coping up with the competitors makes it essential for the business to acquire the competitive advantage. This enhances the overall operational significance of the business.
The balance scorecard which has been formed after analyzing the mission, vision, values and SWOTT is based on the fundamental strengths and capabilities of the business. This will increase the business sustainability and hence forth generate greater profits for the organization. Profit maximization goals and delivering excellence to the customers of the organization is the sole value which is delivered using this plan of action. Evolution Engines being a relatively new business will require that all its goals are accomplished and the competitive advantage is sustained. This will require the company to interact with vendors who can arrange the cheapest raw materials and introduce labor practices which also result ultimately in low cost production. All these trends and practices lead the organization towards operational excellence. All these factors mentioned are derived after understanding the business and industry norms.
References
Marr, B., and Adams. C. (2004). The balanced scorecard and intangible assets: similar ideas, unaligned concepts, Measuring Business Excellence, 8(3), 18-27
Niven, P. R. (2005). Balanced scorecard diagnostics: Maintaining maximum performance. John Wiley & Sons Incorporated.
Papalexandris, A., Ioannou, G., Prastacos, G., & Eric Soderquist, K. (2005). An integrated methodology for putting the balanced scorecard into action. European Management Journal, 23(2), 214-227.
